In 2002, the Supreme Court of India ordered the creation of the CAMPA fund. CAMPA mitigates the impact of converting forest land to non-forest purposes by ensuring that funds are released and used quickly, efficiently and transparently through well-defined institutional mechanisms, aiming to be.The CAMPA Act also applies to States, Union Territories, and the Centre.
a. Compensatory afforestation
b. Forest Net Present Value (NPV)
c. Other project-specific payments.
The objectives of CAMPA are listed below:
1. The proposed goal of the law must be fulfilled by using CAMPA funds only for the purpose for which they are intended. It should be effectively used only for afforestation and nature conservation.
2. Close examination of public administration performance using CAMPA funds should be proclaimed. The central government should adopt the concept of performance-based budgeting to allocate funds to the state governments, in which case the performance of previous funds should be reviewed for split funding.
3. State governments should restore existing forests rather than creating new ones.
The Compensatory Afforestation Fund and the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) were established in 2004 by a Supreme Court order in 2001.
In 2006, Adhoc CAMPA was established to manage the compensatory afforestation fund. To offset the loss of forest area and maintain sustainability, the Indian government has come up with a well-defined law known as CAMPA (Compensatory Afforestation Fund Management and Planning Authority).
The state CAMPA would serve as a common repository of funds accruing to the account of compensatory afforestation and NPV. It would distribute the funds according to the guidelines governing the use of funds for the conservation, protection, and management of forests. The funds would also be used to protect wildlife and improve their habitats.
As per the rules, 90% of the CAF (Charities Aid Foundation) money is to be given to the states while 10% is to be preserved by the Centre.
The CAF Act was passed by the Central Government in 2016.
The amount paid is based on a number of factors, including goods and services such as timber, firewood, soil conservation or seed propagation. existed. This value is called Net Present Value (NPV) and is calculated by a panel of experts. This final amount to be paid by the User Agency includes NPV costs, plantation and other fees.